Sampo to launch a long-term incentive scheme for 2024-2026
SAMPO PLC STOCK EXCHANGE RELEASE 6 March 2024 at 9:35 am
Sampo to launch a long-term incentive scheme for 2024-2026
The Board of Directors of Sampo plc has today decided to adopt a new performance based long-term incentive scheme for the Group Executive Committee (including the Group CEO) and other senior leaders and key employees of Sampo Group.
Sampo aims to ensure that management incentives are aligned with the shareholders’ interests and Group strategy. The long-term incentive scheme 2024 (LTI 2024) covers the members of the Group Executive Committee (including the Group CEO) and approximately seventy (70) senior leaders and key employees whose efforts and abilities have a direct impact on Sampo Group’s operational performance and strategy. Sampo’s Board of Directors is not included in the scheme.
The incentive scheme participants will be granted performance incentive units in 2024, the maximum number of performance incentive units will be no more than 370,000 in total. The performance incentive units have a three-year performance period covering financial years 2024-2026, with subsequent deferral periods according to the rules and regulations applicable to Sampo Group.
To achieve a maximum reward from the LTI 2024, excellent financial and operational performance is required. The performance assessment will be based on the following performance criteria:
• Relative total shareholder return
• Adjusted absolute total shareholder return
• Underwriting profit growth
• Sustainability charter: Group and subsidiary balanced scorecards relating to development, implementation and execution on Science Based Targets.
In addition, the performance incentive units are subject to Sampo A share price movements over the performance period.
The reward will be settled as a cash compensation. Participants subject to the deferral rule according to the remuneration policies in force in the relevant Sampo Group companies at the launch of LTI 2024 are mandated to purchase Sampo A shares net after tax with 50 per cent of the reward. The deferral period is three years, and the Board of Directors will perform a risk and compliance assessment before any shares are released to participants.
The total maximum number of performance incentive units that can vest to participants under the LTI 2024 is 134,026 for the Group CEO and other members of the Group Executive Committee, and a maximum of 235,974 for senior leaders and key employees.
The estimated cost of the LTI 2024 is approximately EUR 25.73 million. The estimation is based on a maximum vesting of incentive units and a 50 per cent increase of the Sampo A share price compared to 1 January 2024. A summary of the LTI 2024 is available at www.sampo.com/incentiveterms.
Long-term incentive schemes in Sampo plc are designed to attract and retain highly competent, high-performing people that have the ability, experience, and skills to deliver on Sampo’s long-term strategy and creating shareholder value, but at the same time safeguard sustainable business practices and the long-term financial stability of the Group.
SAMPO PLC
Board of Directors
For further information, please contact:
Sami Taipalus
Head of Investor Relations
tel. +358 10 516 0030
Distribution:
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Nasdaq Stockholm
London Stock Exchange
FIN-FSA
The principal media
www.sampo.com
